Insights

Protect Your Valuable Personal Collections with the Right Insurance Coverage

January 25, 2017

Private Client

You leave a precious ring from your jewelry collection on the kitchen counter and walk away. A day later, you remember you put it there, but when you go back to the kitchen, it’s nowhere to be found.

This mysterious disappearance is one of the most common loss scenarios collection owners face, and unfortunately, It’s not covered by a homeowner’s policy unless you have scheduled your jewelry collection.

Collections Insurance

As a collector, you’ve put time, money and effort into your passion, and whether it’s jewelry, fine art, wine or other collectibles, items in your collection hold monetary and sentimental value, so why chance it by not having the right coverage?

Consider a collections policy to protect your valuables properly. This is a specially designed insurance policy for people who want to protect their valuable collectibles.

The Value of a Collections Policy

One of the key benefits of a collections policy is broader protection for your collectible items than you would have in a homeowner’s policy.

Unfortunately, most people don’t realize their homeowner’s insurance is not adequate protection, especially for their jewelry. In fact, most standard homeowners policies limit coverage for jewelry at $500!

Here are some of the benefits a collections policy includes:

  • No deductible is applicable when you’ve scheduled collectibles individually or blanket your collections policy
  • Fifty percent more coverage is available at the time of a loss, if the item is worth more than the value scheduled
  • Mysterious disappearances are covered
  • Worldwide coverage is included

This type of protection is critical if you experience a theft either inside or outside of your home.

What’s Covered – An Example

Let’s say you misplaced just one of your diamond earrings. Under a homeowner’s policy, this scenario is likely not covered. Under a collections policy, it’s covered with the option to replace the entire pair.

Depending on the carrier, other benefits offered include:

  • Blanket coverage of a collection up to $10,000 per item with the option to raise it to $100,000 in some instances
  • Insure the true value of jewelry within your collection
  • Inflation protection at the time of loss if the value of an item has increased over time
  • Coverage for new jewelry purchases and for jewelry on loan for up to 90 days
  • Reduced rates for jewelry kept in a safety deposit box, safe or other secure place

Do You Have a Collection?

Sometimes people aren’t even aware they have a “collection” without further professional analysis. And even if you don’t have a large collection, it’s worth exploring a collections policy.

The reason? When it comes to a loss, many are surprised to find out there’s a cap on the coverage they were counting on their homeowners policy to pay.

 

 

See all articles by Diane Borden

All views expressed in this article are the author’s own and do not necessarily represent the position of Woodruff-Sawyer & Co.

Diane Borden

Private Client Executive

Contributor, Private Client

Diane is co-leader of Woodruff Sawyer’s Private Client Practice, responsible for the strategic development and management of our personal insurance operations. With more than 25 years’ experience serving in underwriting and brokerage roles, Diane’s expertise as a trusted insurance advisor has helped generations of high net-worth individuals and their families design comprehensive personal insurance portfolios geared to their unique lifestyle and risk to loss.

855.738.1115

LinkedIn

Diane Borden

Private Client Executive

Contributor, Private Client

Diane is co-leader of Woodruff Sawyer’s Private Client Practice, responsible for the strategic development and management of our personal insurance operations. With more than 25 years’ experience serving in underwriting and brokerage roles, Diane’s expertise as a trusted insurance advisor has helped generations of high net-worth individuals and their families design comprehensive personal insurance portfolios geared to their unique lifestyle and risk to loss.

855.738.1115

LinkedIn